UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 40322 / August 13, 1998
Investment Advisers Act of 1940
Release No. 1742 / August 13, 1998
Administrative Proceedings
File No. 3-9674
:
In the Matter of : ORDER INSTITUTING
: ADMINISTRATIVE PROCEEDINGS
JEFFREY A. EGAN, : PURSUANT TO SECTIONS 15(b)
: AND 19(h) OF THE SECURITIES
Respondent : EXCHANGE ACT OF 1934 AND
: SECTION 203(f) OF THE
: INVESTMENT ADVISERS ACT OF
: 1940, MAKING FINDINGS AND
: IMPOSING REMEDIAL SANCTIONS
_____________________________
I.
The Commission deems it appropriate and in the public interest
that administrative proceedings be instituted pursuant to
Sections 15(b) and 19(h) of the Securities Exchange Act of 1934
(Exchange Act) and Section 203(f) of the Investment Advisers Act
of 1940 (Advisers Act) against Jeffrey A. Egan (Egan).
In anticipation of the institution of these administrative
proceedings, the Respondent has submitted an Offer of Settlement,
which the Commission has determined to accept. Solely for the
purpose of this proceeding and any other proceeding brought by or
on behalf of the Commission, or to which the Commission is a
party, and without admitting or denying the Commission's
findings, except for those contained in Paragraphs III.A. and
III.B. below, which are admitted, Respondent consents to the
entry of this Order Instituting Administrative Proceedings
Pursuant to Sections 15(b) and 19(h) of the Securities Exchange
Act of 1934 and Section 203(f) of the Investment Advisers Act of
1940, Making Findings and Imposing Remedial Sanctions (Order).
II.
Accordingly, it is ordered that administrative proceedings
pursuant to Sections 15(b) and 19(h) of the Exchange Act and
Section 203(f) of the Advisers Act be, and hereby are,
instituted.
III.
On the basis of this Order and the Offer of Settlement submitted
by the Respondent, the Commission makes the following findings:
A. Egan, 37, resides in Bloomfield Hills, Michigan. He has
been a registered representative since November 1984 and has
Series 6, 7, 24, 63, and 65 licenses. Since May 1994, Egan has
been associated with a broker-dealer registered with the
Commission and an investment adviser registered with the
Commission.
B.On September 23, 1996, Egan pled guilty to one count of
criminal information which charged him with theft of funds from a
pension plan. On May 13, 1997, the United States District Court
for the Eastern District of Michigan sentenced Egan to fifteen
months imprisonment and three years probation and ordered him to
make restitution of $2.5 million to the pension fund. See United
States v. Jeffrey A. Egan, 96 CR 80371 (ED Mich. 1997).
C.The criminal information upon which Egan's conviction was based
stated that Egan and two other individuals misappropriated $3.06
million from the pension fund of Peet Packing Company (Peet), a
privately owned company based in Chesaning, Michigan. The
misappropriation occurred between January and September 1994, and
was effected through a series of transfers of the funds, which
were designed to conceal and disguise the nature, location,
source, ownership, and control of the funds.
IV.
In view of the foregoing, it is in the public interest to impose
the sanction specified in the Offer of Settlement.
Accordingly, IT IS ORDERED that Egan is barred from association
with any broker, dealer, investment company, investment adviser
or municipal securities dealer.
By the Commission.
Jonathan G. Katz
Secretary